Energy Drinks Market - Growth, Trends, and Forecasts (2023 - 2028)

The Energy Drinks Market is Segmented by Product type (Shots, Drinks, and Mixers), by Packaging Type (Bottles and Cans), by Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail Stores, and Other Distribution Channels), and by Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market sizes and forecasts in terms of value (USD million) for all the above segments.

Energy Drinks Industry Overview

Energy Drinks Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 8.46 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Energy Drinks Market Analysis

The energy drinks market is projected to register a CAGR of 8.46% over the upcoming five years.

Increased urbanization, rising disposable incomes, and growing consumer health consciousness all contribute to an increase in demand for non-carbonated beverages. Energy drinks are widely consumed by adolescents due to their claims of improving performance, endurance, and alertness. At the same time, long and erratic working hours and the increasing occurrence of social gatherings are driving consumers toward the consumption of energy drinks.​

There is a rise in the number of consumers who are doing workouts and engaging in various exercise regimes in the comfort of their homes, leading to a continued need for energy drinks. There is a rising preference for rich sources of immunity-boosting foods and beverages that contain vitamins, minerals, and other essential ingredients that boost immunity. This has forced a greater number of players to enter the functional energy drink space in the market. Brands are trying to leverage the trend of "immunity-boosting" by incorporating perceived ingredients or adding the concept of immunity boosters into their marketing activities.

Moreover, growth in the number of health-conscious consumers and increasing consumer awareness regarding active lifestyles, along with growing rates of lifestyle-related diseases, inspired health-oriented consumers to opt for healthy and sugar-free drinks. The energy drink market is also projected to grow due to an increase in promotional and advertisement strategies.

Energy Drinks Industry Segments

An energy drink contains stimulant compounds, usually caffeine, that are marketed as providing mental and physical stimulation. It may or may not be carbonated and may contain sugar, other sweeteners, herbal extracts, taurine, and amino acids. The market studied is segmented by product type, packaging type, distribution channel, and geography.​ By product type, the market is segmented into shots, drinks, and mixers. By packaging type, the market is segmented into bottles and cans. By distribution channel, the market is segmented into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

Product Type
Shots
Drinks
Mixers
Packaging Type
Bottles
Cans
Distribution Channel
Supermarkets/Hypermarkets
Specialty Stores
Convenience Stores
Online Retail Stores
Other Distribution Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
South Africa
United Arab Emirates
Rest of Middle East and Africa

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Energy Drinks Market Trends

This section covers the major market trends shaping the Energy Drinks Market according to our research experts:

Growing Consumer Inclination Toward Low Sugar/Sugar-Free Beverages

Because of the high prevalence of diabetes and other chronic illness, consumers are becoming more aware of the importance of a healthy diet and an active lifestyle. Consumers are choosing low-calorie, low-sugar, or sugar-free dietary patterns in foods and beverages as a result of rising health concerns and increased attempts to prevent the emergence of lifestyle illnesses. Natural sweeteners, such as stevia, are preferred by consumers in their beverages. Companies like PepsiCo Inc. and Coca-Cola have committed to eliminating artificial additives and lowering sugar in their products. Furthermore, changing consumer preferences for sugar-free or low-sugar beverages prompted beverage manufacturers to create new products. Customers are attempting to avoid sugary drinks in order to prevent the negative consequences of excessive sugar consumption, so key players are working on a variety of new products to meet the rising demand for such items. Nexba, a provider of non-alcoholic beverages, took a similar strategy, expanding its product selection to meet the expectations of health-conscious consumers. For instance, in May 2022, Nexba introduced a range of caffeine- and sugar-free energy drinks with added vitamins and prebiotics. Nexba Natural Energy comes in two flavors, namely, Lemon & Yuzu and Wild Citrus.

Energy Drinks Market: Market Share of Regular, Mid and Low Calorie Variants of Carbonated Soft Drinks (in %), United Kingdom, 2021

North America Dominates the Market

The high consumption of energy drinks and the massive coffee culture in the United States have pushed the notion of energy shots into the mainstream, which is a major factor driving the sales of energy drinks in the country. Energy drinks are an integral part of social gatherings, parties, and celebrations in the United States. Manufacturers such as Red Bull and Monster Beverages are offering their energy drinks in multiple flavors and two major packaging types, which include PET bottles and cans, providing consumers with a wide range from which to choose their suitable drinks.​ Furthermore, soda consumption in the country is declining, which has created a great opportunity for manufacturers such as Coca-Cola and PepsiCo, who are attempting to capitalize on the name recognition of their legacy brands by making a bigger dent in the growing energy drink category.​ In addition, the manufacturers are taking strategic initiatives to expand their distribution networks and boost their geographical presence. For example, in June 2021, PepsiCo Beverages Canada became the exclusive national distributor of Guru plant-based energy drinks. It is expected that Guru will benefit from PepsiCo’s expansive direct-to-store distribution network across Canada.

Global Energy Drinks Market 2

Energy Drinks Market Competitor Analysis

The energy drink market is competitive, making it hard for new and small companies to compete. Red Bull, The Coca-Cola Company, Rockstar Inc., and PepsiCo are a few of the many companies with high shares in the energy drink market. Companies operating in the market are focusing on personalization and convenience and are also providing healthy, zero-calorie, and low-sugar functional energy drinks to scale their energy drink production. Additionally, product launches may help companies tap into the huge potential for growth in developing regions. Most manufacturers create product awareness through advertising and celebrity endorsements. For example, sports events are sponsored by energy drink manufacturers.

Energy Drinks Market Top Players

  1. Red Bull GmbH

  2. National Beverage Corp.

  3. The Coca-Cola Company

  4. PepsiCo, Inc.

  5. Vital Pharmaceuticals, Inc.

*Disclaimer: Major Players sorted in no particular order

global energy drinks CL image.PNG

Energy Drinks Market Recent Developments

  • September 2022: Coca-Cola Europacific Partners (CCEP) is adding two new flavors to its Monster line-up to attract more consumers. Monster Reserve White Pineapple and Monster Reserve Watermelon are new flavors added to Monster's traditional energy drink range.
  • January 2022: As part of its North American Coffee Partnership, PepsiCo launched a ready-to-drink energy drink called "Baya" as part of its nearly 30-year-old joint venture with Starbucks. It comes in three flavors, namely, mango guava, raspberry lime, and pineapple passionfruit, and contains caffeine and vitamin C to support the immune system.
  • March 2021: PepsiCo Inc., introduced a line of energy drinks called "Mtn Dew Rise Energy," targeted at morning consumers. The drink was expected to be promoted by NBA superstar LeBron James. The new line is available in six flavors: pomegranate blue burst, orange breeze, strawberry melon spark, tropical sunrise, berry blitz, and peach mango dawn.

Energy Drinks Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Shots

      2. 5.1.2 Drinks

      3. 5.1.3 Mixers

    2. 5.2 Packaging Type

      1. 5.2.1 Bottles

      2. 5.2.2 Cans

    3. 5.3 Distribution Channel

      1. 5.3.1 Supermarkets/Hypermarkets

      2. 5.3.2 Specialty Stores

      3. 5.3.3 Convenience Stores

      4. 5.3.4 Online Retail Stores

      5. 5.3.5 Other Distribution Channels

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 United Kingdom

        2. 5.4.2.2 Germany

        3. 5.4.2.3 Spain

        4. 5.4.2.4 France

        5. 5.4.2.5 Italy

        6. 5.4.2.6 Russia

        7. 5.4.2.7 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle East and Africa

        1. 5.4.5.1 South Africa

        2. 5.4.5.2 United Arab Emirates

        3. 5.4.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Red Bull GmbH

      2. 6.3.2 PepsiCo Inc.

      3. 6.3.3 The Coca-Cola Company

      4. 6.3.4 Vital Pharmaceuticals Inc.

      5. 6.3.5 National Beverage Corp.

      6. 6.3.6 Alticor Global Holdings Inc (Amway Corp)

      7. 6.3.7 Molson Coors Beverage Company

      8. 6.3.8 Suntory Holdings Limited

      9. 6.3.9 Aspire Brands Inc.

      10. 6.3.10 Vuka Brands

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Energy Drinks Market Research FAQs

The Energy Drinks Market is studied from 2018 - 2028.

The Energy Drinks Market is growing at a CAGR of 8.46% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Red Bull GmbH, National Beverage Corp., The Coca-Cola Company, PepsiCo, Inc., Vital Pharmaceuticals, Inc. are the major companies operating in Energy Drinks Market.

Energy Drinks Industry Reports

In-depth industry statistics and market share insights of the Energy Drinks sector for 2020, 2021, and 2022. The Energy Drinks research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Energy Drinks report PDF.

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